The potential of oil & gas exporters to contribute to global decarbonization is vastly underappreciated. In the article linked below, I summarize our recent peer-reviewed paper showing how Norway (as an energy exporter) can help Germany (as an energy importer) to decarbonize rapidly, practically, and economically while maintaining attractive profit margins.
The key is to develop a local CCS industry (basically just oil & gas extraction in reverse) using the vast pool of relevant local expertise, and export a diversified mix of decarbonized energy products. Electricity and hydrogen can be exported to neighbouring countries, and a wide range of other easily tradeable and storable industrial products (exemplified by steel in our study) can access global markets, reducing risks from uneconomical green technology-forcing policies in neighbouring countries.
This understanding is more important than ever among all the naïve and irresponsible calls to stop exploring for oil and gas at this time when six out of seven world citizens still live on less than 1000 $/month (and one out of four on less than 100 $/month).
But I must also call out oil & gas exporters for failing to invest a meaningful fraction of their gargantuan profits into realizing this vast potential. With a little foresight, the industry can transform its climate reputation from villain to hero and secure the long-term future both for itself and the planet. Why the delay?
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